NTPC, NTPC Green get Cabinet nod for Rs 20,000 crore renewable energy investment; shares react

The Cabinet Committee on Economic Affairs (CCEA) has approved an increase in the investment limit for NTPC Ltd, enhancing its ability to invest in renewable energy projects. The new limit allows NTPC to invest up to Rs 20,000 crore, a significant increase from the previous limit of Rs 7,500 crore.

This decision is part of the broader strategy to accelerate the development of renewable energy projects in India. NTPC aims to achieve a renewable energy capacity of 60 GW by 2032, aligning with the country's goal of 500 GW of non-fossil energy capacity by 2030.

NTPC Green Energy Ltd (NGEL), a subsidiary of NTPC, is at the forefront of this initiative. NGEL plans to expand its renewable energy portfolio through both organic and inorganic growth, leveraging partnerships with state governments and other public sector enterprises.

The enhanced investment capacity will support NGEL's projects, including those under its wholly-owned subsidiary, NTPC Renewable Energy Ltd (NREL). NGEL currently manages a renewable energy portfolio of approximately 32 GW, including 6 GW of operational capacity and a pipeline of 9 GW.

The increase in investment capacity is expected to strengthen India's power infrastructure, providing reliable, round-the-clock electricity access across the nation. It also aims to create direct and indirect employment opportunities, boosting local enterprises and supporting socio-economic development.

With India already achieving 50 per cent of its installed electricity capacity from non-fossil fuel sources, this move underlines the country's commitment to energy transition and the aim of achieving 'Net Zero' emissions by 2070.

As part of its strategy, NTPC is forming curated partnerships for renewable project development.

On the stock-specific front, state-run NTPC and NTPC Green shares were last seen trading on a mixed note in Thursday's late deals. NTPC was slightly up 0.03 per cent at Rs 342.70 while NTPC Green shed 0.09 per cent to trade at Rs 111.95.